Agenda item

Report of the Revenues Manager

This report sets out the various types of relief available to businesses to help them towards their business rates.

The Panel received a report of the Revenues Manager setting out information about the various types of relief available to businesses to help them with their business rates.

The Shared Director of Finance explained which relief was mandatory and which the Council had no control over and those awards which the Council had discretion to grant. 

Following a concern from the Vice-Chair about Empty Property Relief, the Shared Director of Finance advised that this relief was only applicable for three months, following that period the charge reverted to the full amount unless other discounts applied.  She added that local authorities were aware of scams carried out by property owners to try to avoid having to pay business rates.  She informed Members that those premises where the business had gone into administration or receivership, the Council was unable to collect any charges due for the premises.

In response to a question from Councillor Jeffree about the cost to the Council, the Shared Director of Finance stated that since April 2013 different relief cost the Council different amounts.  The funding rules for business rates had changed from April.  The Council only needed to forward 40% to Central Government in respect of any income over and above the baseline figure.  If the Council collected less than the baseline figure there was a cost to the Council. 

The Chair suggested that the new Business Rates regime could be added to the work programme as a training session.

Councillor Turmaine asked a number of questions related to business rates, including whether information about empty properties in the High Street was accessible.

The Shared Director of Finance informed the Panel that if a charity occupied premises the mandatory 80% relief would apply.  The Council had no discretion over this award.  A charity could then apply for the discretionary top up relief.  Sports Clubs were also entitled to apply for relief.  The Shared Director of Finance advised that she would ensure that a list of empty properties was circulated to the Panel. 

The Policy and Guidelines attached to the report were the basis which revenues staff used to grant relief. 

The Chair asked whether the Council should have a policy setting out which businesses would be able to receive discretionary relief.  He also questioned whether the Council should have a policy encouraging local businesses and local charities rather than national companies and organisations.

Councillor Martins suggested that the general principle of the Chair’s suggestion was a good idea.

Councillor Meerabux commented that many residents wondered whether the Council provided flexibility to support businesses.  He referred to Brent Cross Shopping Centre which provided free parking for visitors.  He suggested it was important to look at the long term aspects for the town.

The Shared Director of Finance responded that business rates was just one aspect that could be built into a package for businesses; however, this was not the best support mechanism.  Support for businesses might include how to manage a business.  There was a range of support mechanisms other than business rates relief that could be built into a support package.

The Vice-Chair noted that the Council had not awarded any Hardship relief over the last four years.  He asked if Members could be informed whether any other Hertfordshire authorities awarded this relief.

The Vice-Chair commented that he was concerned about secondary retail locations and local shopping areas.  These areas were part of the sustainability of local neighbourhoods.  A policy or package could be developed for these areas.

The Chair added that two areas within his ward would benefit from help, for example allowing people up to 20 minutes free parking.

The Shared Director of Finance agreed that there was a range of benefits that could be included. 

Councillor Turmaine confirmed that the Council had an Economic Development Unit which provided support to businesses.

The Portfolio Holder said that he wanted to air a note of caution.  The Council provided the infrastructure for businesses.  If it was seen to selectively support small local business, where would it stop.  People needed to be able to run a sustainable business.  The Council’s role was to spend money to enable all businesses to flourish.

Councillor Aron agreed with the Portfolio Holder.  She said that she would be anxious if the Council started singling out small individual businesses against national businesses.  She would not want any businesses to be discouraged from coming to Watford.  She wanted Watford to be a vibrant town.

The Vice-Chair stated that St Albans Road had lost several national businesses, but small local businesses had opened which meant the money was kept in the local area.  National or international companies had a percentage of the profits sent outside the area.  In the case of local businesses 100% of the profits were returned to the local area.

RESOLVED –

1.      that the Panel be provided with details of empty properties within the Town Centre.

2.      that the Panel’s comments be noted.